Sukhoi's SuperJet aims for spring certification in Europe

The SuperJet is produced by Russia's Sukhoi Company

By

AudeLagorce

FARNBOROUGH, U.K. (MarketWatch) -- After delays to the certification process of its engine, Sukhoi's SuperJet 100 program is back on track and aiming to get the green light from European authorities by next spring, the chief executive of SuperJet International told MarketWatch on Tuesday.

The SuperJet's engine, which is made by a joint venture of France's Safran (SAF) unit Snecma and Russia's NPO Saturn, finally got the nod from European regulators in late June, roughly two years behind schedule. The Russian authorities are expected to approve it within the next few days.

The SuperJet is produced by Russia's Sukhoi Company -- in which Italy's Finmeccanica (FNC) has a 25% stake -- in cooperation with U.S. and European aviation experts, including Boeing Co.
BA, +0.71%
Snecma, Thales (HO), Messier Dowty, Liebherr Aerospace and Honeywell
HON, +0.50%

The next landmark for the program is the aircraft certification, which should happen by next spring in Europe, SuperJet CEO Alessandro Franzoni said in an interview at the Farnborough Airshow. Once the aircraft is certified in Europe, it can be delivered to airlines in the region and flown on that continent.

In the U.S., the certification process with the Federal Aviation Administration only starts once a domestic airline has ordered it. That is certainly one of Franzoni's ambitions.

"We're talking to some potential U.S customers. We know getting an order will be instrumental to the FAA aplication," he said.

Still, most of his energy these days is devoted to pitching the aircraft to airlines in Latin Amerzica and Africa. There are two main reasons for that. First, air traffic in those regions has held up during the economic downturn and the flow of investment has been stable. Second, the local carriers'aging fleets aren't well-suited to the regional networks they are keen to develop.

"It's a very good match with us," said Franzoni.

On Tuesday, regional Indonesian carrier Kartika placed a firm order for 30 SuperJets, bringing the manufacturer's backlog to more than 150 aircraft. Other customers include Armenia's Armavia, Russia's Aeroflot and Italy's ItAli Airlines.

And there is a good chance another order will come through on Wednesday.

Ideally, it would come from one of the leasing companies, as Franzoni said an order from them would send a strong signal to the industry that the regional jet has its place in airlines' portfolio.

"Leasing companies are not that deep in the regional aircraft market," he said. But he highlighted that the recent air traffic slump, by showing the benefit of smaller aircraft to airlines keen to cut capacity, could spark renewed interest in the 100-seater segment.

"I think that segment is also an interesting way to explore new routes and new products once the market comes back," he said.

The industry is paying increasing attention to the threat that smaller manufacturers like Sukhoi, as well as Canada's Bombardier (BBD.A) and Brazil's Embraer
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could eventually represent to EADS-owned Airbus (EAD) and Boeing's duopoly on the commercial aircraft market. However, Franzoni said he doesn't want to step on the big boys' toes.

"We will not go beyond 120 seats because we do not want to invade the territory of the big ones," he said, though a study is underway to gauge interest in a stretched or shrunk version of the current model.

Franzoni might be interested, however, in talking to Airbus and Boeing about potential partnerships, though he said neither has approached him so far.

The first deliveries of the aircraft, to Armavia and Aeroflot, are still on track to take place before the end of the year.

Sukhoi plans to manufacture at least 700 SuperJet 100s and intends to sell 35% of them to North America, 25% to Europe, 10% to Latin America, and 7% to Russia and China.

There are currently eight SuperJets under production and six aircraft undergoing either flight or ground tests.

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